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STANDARD DOCUMENT COVER SHEET

FOR SEC FILINGS

All documents should be submitted under a cover page which clearly identifies the company and

the specific document form as follows:

SEC Number 121

File Number

BANK OF THE PHILIPPINE ISLANDS

BPI BUILDING, 6768 AYALA AVE. CORNER PASEO DE ROXAS

MAKATI CITY, METRO MANILA

818-55-41 to 48

FISCAL YEAR ENDING DECEMBER 31

(indicate if anything above is new and the date it was changed)

SEC FORM 17Q QUARTERLY REPORTAMENDMENT DESIGNATION (if applicable)

PERIOD-ENDED MARCH 31, 2015

(if a report, financial statement, GIS, or related amendment or show-cause filing)

NONEEACH ACTIVE SECONDARY LICENSE TYPE AND FILE NUMBER

(state NONE if that is the case)

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12. Indicate by check mark whether the registrant:

(a) Has filed all reports required to be filed by Section 17 of the Code and SRC Rule 17 thereunder

or Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of theCorporation Code of the Philippines during the preceding 12 months (or for such shorter period

the registrant was required to file such reports) Yes [X] No [ ]

(b) Has been subject to such filing requirements for the last 90 days Yes [X] No [ ]

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UNAUDITED AUDITEDMARCH 31, 2015 DECEMBER 31, 2014

Cash and Other Cash Items 27,630,309 38,426,679

Due from Bangko Sentral ng Pilipinas 228,401,010 211,946,457

Due from Other Banks 16,735,366 22,226,814

Interbank Loans Receivable and Securities

Purchased under Agreements to Resell 61,581,310 5,782,217

Financial Assets at Fai r Value through Profit or Loss

Derivative Financial Assets 37,923,772 35,981,383

Trading Securities 14,427,117 15,861,627

Available-for-Sale Securities, net 27,961,356 51,309,378

Held-to-Maturity Securities, net 218,654,083 209,408,777

Loans and Advances, net 729,518,894 800,169,637

Assets Held for Sale, net 4,804,778 5,018,099

Bank Premises, Furniture, Fixtures and Equipment, net 12,488,329 12,759,508

Investment Properties, net 785,539 807,577

Investments in Subsidiaries and Associates, net 4,972,608 4,784,058

Assets Attributable to Insurance Operations 16,542,370 16,444,672

Deferred Income Tax Assets, net 5,941,081 5,718,082

Other Resources, net 11,115,044 13,551,691

TOTAL RESOURCES 1,419,482,965 1,450,196,656

Deposit Liabilities

Demand 202,777,571 199,690,237

Savings 636,047,449 616,447,640

Time 319,883,454 360,074,918

Sub-total 1,158,708,474 1,176,212,795

Derivative Financial Liabilities 36,905,792 34,845,832

Bills Payable 16,106,168 32,992,551

Due to Bangko Sentral ng Pilipinas and Other Banks 689,559 687,144

Manager's Checks and Demand Drafts Outstanding 8,905,648 8,353,212

Accrued Taxes, Interest and Other Expenses 5,096,910 5,596,970

Unsecured Subordinated Debt - -

Liabilities Attributable to Insurance Operations 13,610,852 13,560,705

Deferred Credits and Other Liabilities 31,182,607 31,268,395

TOTAL LIABILITIES 1,271,206,010 1,303,517,604

CAPITAL FUNDS ATTRIBUTABLE TO THE EQUITY HOLDERS OF BPI

Share Capital 39,275,861 39,271,579

Share Premium 29,371,298 29,340,930

Reserves 2,248,478 2,098,200

Surplus 77,810,428 76,575,400

Accumulated Other Comprehensive Income/ (Loss) (3,115,663) (3,223,231)

145,590,402 144,062,877

NON-CONTROLLING INTERESTS 2,686,553 2,616,175

TOTAL CAPITAL FUNDS 148,276,955 146,679,053

TOTAL LIABILITIES AND CAPITAL FUNDS 1,419,482,965 1,450,196,656


RESOURCES

LIABILITIES AND CAPITAL FUNDS

CONSOLIDATED STATEMENT OF CONDITION

MARCH 31, 2015 AND DECEMBER 31, 2014

(in Thousands of Pesos)

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2015 and 2014(In Thousands of Pesos)

Unaudited Unaudited

2015 2014

NET INCOME BEFORE MINORITY INTEREST 5,002,765 3,615,497

Other Comprehensive Income

Items that may be reclassified subsequently to profit or loss

Net change in fair value reserve on available-for-sale securities,

net of tax effect 24,662 (1,627,354)

Fair value reserve on investments of insurance subsidiaries,

net of tax effect 68,957 106,002

Share in other comprehensive income of associates 69,089 (90,211)

Currency translation differences (73,853) 39,616

Items that will not be reclassified to profit or loss

Actuarial gains (losses) on defined benefit

plan, net of tax effect 706 0

Total Other Comprehensive Income (Loss), net of tax effect 89,561 (1,571,947)

Total Comprehensive Income for the Year 5,092,327 2,043,550

Attributable to:

Equity holders of BPI 5,022,724 2,019,804

Non-Controlling Interest 69,602 23,747

5,092,327 2,043,550

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Share Capital Share Premium Reserves Surplus

Accumulated Other

Comprehensive

Income (Loss) Total

Non-controlling

Interests Total Equity

Balance, December 31, 2014 39,271,579 29,340,930 2,098,200 76,575,400 (3,223,231) 144,062,877 2,616,175 146,679,053

Comprehensive Income

Net Income for the year 4,915,156 4,915,156 87,609 5,002,765

Other Comprehensive Income for the year 107,568 107,568 (18,007) 89,561

Total Comprehensive Income for the year - - - 4,915,156 107,568 5,022,724 69,602 5,092,327

Transactions with owners

Issuance of shares 13 - 13 13

Executive Stock Plan amortization 4,269 30,368 9,142 43,779 43,779

Cash Dividends (3,538,993) (3,538,993) (3,538,993)

Transfer from Surplus to Reserves 141,136 (141,136) - -

Other changes in non-controlling interest - 776 776

Total transactions with owners 4,282 30,368 150,278 (3,680,128) - (3,495,200) 776 (3,494,424)

Balance, March 31, 2015 39,275,861 29,371,298 2,248,478 77,810,428 (3,115,663) 145,590,402 2,686,553 148,276,955

Share Capital Share Premium Reserves Surplus

Accumulated Other

Comprehensive

Income (Loss) Total

Non-controlling

Interests Total Equity

Balance, December 31, 2013 35,563,562 8,315,756 1,679,060 62,136,685 (3,160,984) 104,534,079 1,272,609 105,806,688

Comprehensive Income

Net Income for the year 3,603,449 3,603,449 12,049 3,615,497

Other Comprehensive Income for the year (1,583,645) (1,583,645) 11,698 (1,571,947)

Total Comprehensive Income for the year - - - 3,603,449 (1,583,645) 2,019,804 23,747 2,043,550

Transactions with owners

Issuance of Stock Rights 3,705,002 21,032,772 24,737,774 24,737,774

Employee stock option plan: -

Exercise of options -

Cash Dividends (2,127) (2,127) (2,127)

Transfer from Surplus to Reserves - - - -

Others - - - 154 154 154

Other changes in non-controlling interest (4) (4)

Total transactions with owners 3,705,002 21,032,772 - (1,973) - 24,735,800 (4) 24,735,797

Balance, March 31, 2014 39,268,564 29,348,528 1,679,060 65,738,160 (4,744,629) 131,289,683 1,296,352 132,586,035

Consolidated

Attributable to equity holders of BPI

( In Thousands of Pesos)

Attributable to equity holders of BPI


STATEMENT OF CHANGES IN CAPITAL FUNDS

FOR THE PERIOD ENDED MARCH 31, 2015 & MARCH 31, 2014

Consolidated

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2015 2014

CASH FLOW FROM OPERATING ACTIVITIES

Income before income tax 6,220,075 4,730,056Adjustments for:

Impairment losses 1,020,639 915,200

Depreciation and amortization 845,431 934,738

Share in net income of associates (119,460) (90,706)

Share based compensation 9,142 -

Dividend income (26,626) (9,127)

Interest income (12,994,554) (11,198,922)

Interest expense 3,130,438 2,632,496

Operating income before changes in operating assets and liabilities (1,914,915) (2,086,265)

Changes in operating assets and liabilities

(Increase) decrease in:

Due from Bangko Sentral ng Pilipinas 0 0

Interbank loans receivable and securities purchased under agreements to resell 470,695 0

Trading securities 1,398,553 (20,242,874)Loans and advances 69,670,468 (7,626,053)

Assets held for sale (9,759) 411,015

Assets attributable to insurance operations (113,844) 360,727

Other resources 2,047,839 (1,591,233)

Increase (decrease) in:

Deposit liabilities (17,504,321) 4,097,085

Due to Bangko Sentral ng Pilipinas and other banks 2,415 (1,455,185)

Manager's checks demand drafts outstanding 552,436 (740,635)

Accrued taxes, interest and other expenses (215,818) (1,221)

Liabilities attributable to insurance operations 50,147 (554,035)

Derivative financial instrument 117,572 300,757

Deferred credits and other liabilities (85,082) 466,548

Net cash from (used in) operations 54,466,386 (28,661,370)

Income taxes paid (1,440,308) (864,824)Interest paid (3,414,680) (2,975,231)

Interest received 14,863,567 12,213,669

Net cash from (used in) operating activities 64,474,966 (20,287,756)

CASH FLOWS FROM INVESTING ACTIVITIES

(Increase) decrease in:

Available for sale securities 22,936,077 61,886,289

Held-to-maturity securities (10,209,963) (80,753,349)

Bank, premises, furniture, fixtures and equipment (408,180) (628,501)

Investment in subsidiaries and associates, net (4,120) 320,606

Assets attributable to insurance operations (30,262) (1,243,094)

Investment property,net (999) (24,633)

Dividends received 26,626 9,127

Net cash from (used in) investing activities 12,309,180 (20,433,555)

CASH FLOWS FROM FINANCING ACTIVITIESCash Dividends (3,538,993) (3,202,848)

Collection on stock subscriptions 34,650 24,737,774

Increase (decrease) in bills payable (16,886,384) (7,573,462)

Net cash from (used in) f inancing activities (20,390,726) 13,961,464

NET INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS 56,393,420 (26,759,847)

CASH AND CASH EQUIVALENTS

January 1 273,557,602 299,771,823

March 31 329,951,022 273,011,976


CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE QUARTER ENDED MARCH 31, 2015 AND MARCH 31 2014

(In Thousands of Pesos)

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Financial Indicators

As at March 31, 2015 and 2014

2015 2014

a) Liquidity Ratio * 62.0% 65.7 %

b) Debt to Equity Ratio ** 11.1% 14.2 %

c) Asset to Equity Ratio 975.0 925.1 %

d) Interest Rate Coverage Ratio *** 325.7% 315.2 %

e) Net Interest Margin on Average Earning Assets 3.1% 3.0 %

f) Return on Average Equity 13.8% 12.4 %

g) Return on Average Assets 1.5% 1.2 %

h) Cost to Income Ratio 50.3% 54.4 %

i) Cost to Assets Ratio 2.2% 2.3 %

j) Capital to Assets Ratio 10.3% 10.8 %

* Liquid Assets over Total Deposits

** Bills Payable and Unsecured Subordinated Debt over Total Equity

*** Net Income Before Income Tax add back Interest Expense and Depreciation

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NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2015

SEC REQUIREMENT DISCLOSURE

Disclosure that the issuers interim

financial report is in compliance with

generally accepted accounting

principles

The Banks interim financial statements have

been prepared in accordance with the Phil.

Financial Reporting Standards (PFRS) which

includes applicable PFRS, PAS (Phil. Accounting

Standards) and interpretations approved by the

FRSC (Financial Reporting Standards Council).

The following information, as a

minimum, should be disclosed in the

notes to financial statements, if

material and if not disclosed

elsewhere in the interim financial

report:

A statement that the same accounting

policies and methods of computation

are followed in the interim financial

statements as compared with the most

recent annual financial statements or,

if those policies or methods have been

changed, a description of the nature

and effect of the change.

The Banks interim financial statements have

been prepared consistent with its most

recent annual financial statements as of

December 31, 2014 which was in accordance

with the PFRS adopted by the SEC.

Explanatory comments about the

seasonality or cyclicality of interim

operations

Nothing to report

The nature and amount of items

affecting assets, liabilities, equity, net

income, or cash flows that are unusual

because of their nature, size, or

incidents

Nothing to report

The nature and amount of changes in

estimates of amounts reported in prior

interim periods of the current financial

year or changes in estimates of

amounts reported in prior financial

years, if those changes have a material

effect in the current interim period.

The mandatory effective date of PFRS 9 is for

annual periods beginning January 1, 2018. The

Bank has yet to assess the full impact of PFRS 9

and intends to adopt PFRS9 upon completion of

the IASB project.

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MARCH 31, 2015


Issuances, repurchases, and

repayments of debt and equity

securities

Nothing to report

Dividends paid (aggregate per share)

separately for ordinary shares and

other shares

On March 17, 2015, total cash dividends paid to

Common Stockholders of record as of February 24,

2015 amounted to P3.5 B.

Segment revenue and segment result

for business segments or geographical

segments, whichever is the issuers

primary basis of segment reporting.

(This shall be provided only if the issuer

is required to disclose segmentinformation in its annual financial

statements).

Attached

Material events subsequent to the end

of the interim period that have not

been reflected in the financial

statements for the interim period

The effect of changes in the

composition of the issuer during theinterim period, including business

combinations, acquisitions or disposal

of subsidiaries and long-term

investments, restructurings, and

discontinuing operations.

Nothing to report

Changes in contingent liabilities or

contingent assets since the last annual

balance sheet date

Changes in contingent liabilities and contingent

assets are in the normal course of business and

are not anticipated to cause any material losses

from those commitments/ contingent liabilities.

Existence of material contingencies

and any other events or transactions

that are material to an understanding

of the current interim period.

Nothing to report

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MARCH 31, 2015


Assess the financial risk exposures of

the company and its subsidiaries

particularly on currency, interest,

credit, market and liquidity risks. If any

change thereof would materially affect

the financial condition and results of

operation of the company, provide a

discussion in the report on the

qualitative and quantitative impact of

such risks and include a description of

any enhancement in the companys

risk management policies to address

the same;

The BPI Group is exposed to financial risks

primarily through trading and investments in

bonds, currencies, financial derivatives and

structured investment products. The risks

associated with these financial instruments are

closely monitored through the various risk limits

and management triggers defined and set by the

Board through its Risk Management Committee

(RMC). BPI has since maintained its conservative

risk appetite by concentrating on investment-

grade securities, thus exposing the Bank to

manageable market and credit risks. The

persistent challenges observed in the financialmarkets have resulted to more active risk

management strategies in the Bank.

Supplemental sensitivity and scenario analyses,

rigorous risk monitoring and escalation

procedures, and frequent in-depth discussions

involving Senior Management and the Board are

measures to strengthen the effectiveness of the

Banks risk management framework. Moreover,

the levels of risk exposures and limits have been

regularly reviewed to reflect the Boards overall

risk appetite. Meanwhile, the Bank's Treasury

Group has been executing trading and portfolio

strategies to manage risk exposures and preserve

and improve the Banks comprehensive income.

As a prudent measure to protect the Banks

earnings from interest rate volatility, the average

sensitivity of the Banks positions for every 1 basis

point movement in interest rates has been

significantly reduced from year-end 2014.

In assessing the Bank's liquidity risk position, BPIas an institution, is deemed to be liquid enough

to serve its financial obligations to its clients and

other creditors. The Bank's liquidity stress testing

results as of the first quarter of 2015 consistently

revealed that under both name-specific and

system-wide crisis scenarios, the Bank would still

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MARCH 31, 2015


have more than sufficient liquidity to meet its

financial obligations.

The Bank's Risk Management Office (RMO)

continues to improve its assessment and

measurement of risks by enhancing its

methodologies of risk measurement and

monitoring. The RMO periodically reviews and

updates the scenarios and assumptions used in

the Bank's models and regularly conducts back

testing to assess the accuracy, effectiveness and

relevance of its models and risk metrics. The Bank,

to the best of its knowledge, deems that there areno anticipated and significant change that shall

materially affect the Bank's financial condition and

results of operation.

The significant judgments made in

classifying a particular financial

instrument in the fair value hierarchy.

The assumptions/judgments made in the Banks

interim financial statements are consistent with

the most recent annual financial statements as

of December 31, 2014.

A comparison of the fair values as ofdate of the recent interim financial

report and as of date of the preceding

interim period, and the amount of

gain/loss recognized for each of the

said periods

In accordance with PAS 39, trading accountsecurities are marked to market as profit and

loss. As such, these are reflected in Other

Income Trading gain (loss) on securities

including realized gains (losses) from

opportunistic sell down of inventory.

Available for sale securities are marked to

market against capital funds and reflected as

Accumulated Other Comprehensive Income

(Loss). The movements of these accounts are

recognized as Other Comprehensive Income Net Change in Fair Value Reserve for the

banking books and Fair Value Reserve on

investments of insurance subsidiaries.

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MARCH 31, 2015


The table below summarizes the carrying

amount and fair value of Held To Maturities

Securities, net

Carrying amount Fair value

(In Million Pesos)

Mar 31, 2015

(unaudited) 218,654 227,682

Dec 31, 2014

(audited) 209,409 220,292

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In P Mn

CONSUMERBANKING

CORPORATEBANKING

INVESTMENT

BANKING /FINANCIAL

MARKETS

CORP / ELIM TOTAL

Net interest income 5,567 1,267 2,932 (338) 9,429

Impairment charge 989 32 (0) - 1,021

4,579 1,235 2,933 (338) 8,408

Fees and commission 1,431 137 204 (36) 1,736

Other income 1,209 403 1,677 428 3,717

GRT (164) (14) (128) (19) (325)

Other Income, net 2,476 526 1,754 372 5,128

Compensation and fringe

benefits2,060 268 230 471 3,029

Occupancy and equipment-

related expenses

1,004 290 34 789 2,117

Other operating expenses1,516 1,058 362 (765) 2,171

Total operating expenses 4,581 1,616 625 494 7,316

Operating profit 2,474 145 4,061 (460) 6,220

Share in net income of associates 133

Provision for Income Tax 1,217

Total Assets 449,597 526,104 413,530 30,252 1,419,483

Total Liabilities 1,186,972 12,195 51,822 20,217 1,271,206


Net interest income after

impairment charge

For the Three Months Ended March 31, 2015

SEGMENT REPORT

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Item 2. Management Discussion and Analysis of Financial Condition and Results of

Operations

Financial Condition as of March 31, 2015 versus as of December 31, 2014

Total resourcesdecreased P30.7 billion, or 2.1%, to P1.4 trillion, from P1.5 trillion.

Assets

Loans and advancesat P729.5 billion, declined P70.7 billion, or 8.8%, owing to seasonality

of loan demand, especially from local conglomerates and multinationals.

Available-for-sale securities, netat P28.0 billion, declined P23.3 billion, or 45.5%, due to

lower position taking in both local and foreign holdings.

Cash and Other Cash Items, at P27.6 billion,declined P10.8 billion, or 28.1% on account of

lower cash requirement this period as compared to year end 2014.

Due from Other Banks, at P16.7 billion, declined P5.5 billion, or 24.7%, due to lower

working balances maintained with the correspondent banks. Other resources, net at P11.1 billion, declined P2.4 billion, or 18.0%, on lower

miscellaneous assets, deferred charges, and accrued interest and fees receivables.

Trading Securities at P14.4 billion, declined P1.4 billion, or 9.0%, on lower holdings of local

bonds intended for trading.

Interbank Loans Receivable and Securities Purchased under Agreements to Resell at P61.6

billion, increased P55.8 billion, or 965.0%, due to higher volume placements in Reverse

Repurchase Agreements (RRP).

Due from Bangko Sentral ng Pilipinas at P228.4 billion, increased P16.5 billion, or 7.8%, on

higher special deposit account with the BSP.

Derivative financial assetsat P37.9 billion, increased P1.9 billion, or 5.4% on higher positive

fair value on certain derivative positions such as interest rate swaps, forwards and non-

deliverable swaps (NDS).

Liabilities

Total deposits at P1.2 trillion, declined P17.5 billion, or 1.5%, mainly due to the P40.2

billion, or 11.2%, drop in time deposits on account of maturities. Savings and demand

deposit balances, on the other hand, expanded P19.6 billion, or 3.2%, and P3.1 billion, or

1.6%, respectively.

Bills payable at P16.1 billion, declined P16.9 billion, or 51.2%, on reduced external

borrowings.

Accrued taxes, interest and other expensesat P5.1 billion, declined P500 million, or 8.9%,due to payments of accrued interest on interest rate swaps, accrued taxes and licenses,

accrued payments of performance bonuses, and other expenses payable.

Derivative financial liabilities at P36.9 billion, increased P2.1 billion, or 5.9%, on higher

negative fair value on certain swap positions.

Managers checks and demand drafts outstanding at P8.9 billion, increased P552 million,

or 6.6%, on higher level of outstanding managers checks issued.

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Total capital funds at P145.6 billion, expanded P1.5 billion, or 1.1 % from yearend 2014 on

accumulated earnings and higher reserves. Reserves at P2.2 billion, increased P150.3 million, or

7.2%, on higher provision for trust business.

Non-controlling interests at P2.7 billion, increased P70.4 million, or 2.7%, on higher retainedearnings/surplus reserves of the Banks non-life insurance subsidiary.

RESULTS OF OPERATIONS

For the Quarters ended March 31, 2015 and 2014

Net income for the first quarter of 2015 stood at P4.9 billion, up P1.3 billion, or 36.4%, from P3.6

billion in the first quarter of 2014. This net income increase was driven largely by the P2.2 billion,

or 17.7%, growth in total revenues and was partially offset by the increases inother expensesby

P593 million, or 8.8% and impairment losses by P105 million, or 11.5%.

Net interest income at P9.4 billion, increased P1.2 billion, or 15.2% owing to the P172.7 billion, or

14.5%, average asset base expansion.

Interest income stood at P12.6 billion, up or P1.7 billion, or 16.1%, and this was affected by the

following movements:

Increase in interest income on loans and advancesat P10.2 billion, up P1.7 billion, or 20.6%

on higher volume and yield.

Increases in interest income held-to-maturity securitiesat P2.1 billion, on available-for-

sale securitiesat P215 million, and on trading securitiesat P83 million, up P302 million, or16.8%, P23.7 million, or 12.4%, and P6.9 million, or 9.1%, respectively. These increases in

interest income were primarily due to higher volume partly offset by lower yield.

Decline in interest incomeon deposits with BSP and other banksat P390 million, down

P279 million, or 41.7%, on account of lower volume and yield.

Increase in Gross receipt taxat P436 million, up P56 million, or 14.6%, on higher interest

income.

Interest expenseat P3.1 billion, increased P498 million, or 18.9%, and this was impacted by the

following movements:

Increase in interest expense on depositsat P3.0 billion, up P504 million, or 19.9%, dueto higher volume and cost;

Decline in interest expense on bills payable and other borrowings at P88 million, down

P6 million, or 6.7%, due to lower cost.

Other incomeat P5.1 billion, was P946 million, or 22.6% higher than the P4.2 billion earned in the

first quarter of 2014.

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Trading gain (loss) on securitiesat P778 million, was P858 million higher, coming from a

loss of P79.8 million in the same period last year. This improvement in trading gain was

largely due to the favorable market condition experienced in the early part of the year

which prompted the Bank to take profits.

Income attributable to insurance operationsat P439 million, increased P192 million, or

77.9%, on account of the growth in gross premiums, higher income from investments andother income of all insurance companies partly offset by higher actuarial reserves of BPI

Philam.

Other operating income at P2.0 billion, was P121 million, or 5.7% lower as last year

included a one-off fee received from the bancassurance affiliate.

Impairment losses at P1.0 billion, increased P105 million, or 11.5%, on higher loan loss

provisioning.

Other expensesat P7.3 billion, grew P593 million, or 8.8% from P6.7 billion.

Compensation and fringe benefits at P3.0 billion, increased P270 million, or 9.8%, assalaries and wages grew on account of increased headcount.

Other operating expensesat P2.2 billion, up P265 million, or 13.9%, on higher regulatory

costs and management & other professional fees, and the timing difference on the payment

of directors bonuses.

Occupancy and equipment-related expensesat P2.1 billion, up P58 million, or 2.8%, on

higher contractual, rental, depreciation and amortization costs.

Provision for income taxat P1.2 billion, increased P103 million, or 9.2% from P1.1 billion.

Deferred income taxat (P228 million), was P132 million, or 36.7%, higher from last years

(P360 million) due to accounts with timing differences.

Current income taxat P1.4 billion, was P30 million, or 2.0% lower on lower taxable income

of certain subsidiaries.

Income attributable to non-controlling interest at P88 million, increased P76 million, or 627%, due

to improved income across all insurance subsidiaries and income recognition from leasing affiliate.

Total comprehensive income at P5.0 billion, increased P3.0 billion, or 148.7%, brought about by

the P1.7 billion improvement in total other comprehensive income, net of tax effect and the P1.4

billion increase in net income before minority interest.

Net change in fair value reserve on available-for-sale securities, net of tax effect at P25

million, increased P1.6 billion, or 101.5%, from a loss of P1.6 billion on account of theimprovement in the market valuation of the Banks investment securities.

Share in other comprehensive income of associates at P69 million, increased P159 million,

or 176.6%, on higher market valuation of the investments of the bancassurance affiliate.

Currency translation differencesat (P74 million), was P113 million, or 286.4% lower due

to the general strengthening of the Philippine Peso against the US Dollars, Hong Kong

Dollars and the Euro Currency.

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Fair value reserve on investments of insurance subsidiaries, net of tax effect at P69

million, declined P37 million, or 35.0%, on lower market valuation of the insurance

subsidiaries investment funds.

Income attributable to non-controlling interestat P70 million, increased P46 million, or

193.1%, on higher income of the Banks insurance companies and the initial recognition ofBPI Century Tokyo Lease & Finance Corpsincome as an affiliate.

Key Performance Indicators

The following ratios, applied on a consolidated basis, are used to assess the performance of the

Bank and its majority owned subsidiaries:

Mar 31, 2015 Mar 31, 2014

Return on Equity (%) 13.8 12.4Return on Assets (%) 1.5 1.2

Net Interest Margin (%) 3.1 3.0

Operating Efficiency Ratio (%) 50.3 54.4

Capital Adequacy Ratio (%)-Basel III 15.7 16.0

Return on equity(ROE), net income divided by average equity, and return on assets(ROA), net

income divided by average assets, were higher at 13.8% and 1.5%, respectively, due to the higher

net income attained in the first quarter vs. same period in 2014. ROE and ROA measure the Banks

efficiency in utilizing its capital and resources, respectively, to generate profits.

Net interest margin(NIM), net interest income divided by average interest bearing assets, at 3.1%

was slightly higher by 5 basis points than last years first quarter as yields on loans and interbank

loan improved.

Operating efficiency ratio (cost to income), operating expenses divided by total revenues, declined

from 54.4% to 50.3% as growth in revenues outpaced that of the operating expense. Cost to

income ratio measures the Banks ability to utilize its overhead to generate revenues.

Capital adequacy ratio (CAR), total qualifying capital divided by total risk-weighted assets,

measures the ability of the Banks capital funds to cover its various risks. The Banks CAR at 15.7%

was lower than last years 16.0%, as last year was impacted by the P25 billion capi tal build up in

February 2014. The Banks CAR is above the BSPs minimum requirement of 10%. CET 1 ratio at

14.8%, was 37 bps lower than same period last year, and above the minimum regulatory

requirement.

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Material Events and Uncertainties

The Bank has nothing to report on the following:

1. Any known trends or any known demands, commitments, events or uncertainties that will

result in or that are reasonably likely to result in the registrants liquidity increasing or

decreasing in any material way.

2. Any events that will trigger direct or contingent financial obligation that is material to the

company, including any default or acceleration of an obligation.

3. Other material off-balance sheet transactions, arrangements, obligations (including contingent

obligations), and other relationships of the company with unconsolidated entities or other

persons created during the reporting period other than those mentioned above.

4. Material commitments for capital expenditures.

5. Any known trends, events or uncertainties that have had or that are reasonably expected to

have a material favorable or unfavorable impact on net sales or revenues or income from

continuing operations.

6. Events that will cause material change in the relationship between costs and revenues (such as

known future increases in cost of labor or materials or price increases or inventory

adjustments).

7. Any significant elements of income or loss that did not arise from the registrants continuing

operations.8. Any seasonal aspects that had a material effect on the financial condition or results of

operations.

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Bpi Sec17q 1q2015 Final

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